ONTARIO
SUPERIOR COURT OF JUSTICE
B E T W E E N:
HER MAJESTY THE QUEEN
J. Goulin
- and -
NENAD KOROF
D. Paradkar
HEARD: October 20, 21, 24, 25, 26, 27, 28, 2016
REASONS FOR JUDGMENT
Justice Joseph M. Fragomeni
1The accused, Nenad Korof, (hereinafter referred to as Korof) is charged as follows:
- That he, on or between the 1st day of June, 2013 and the 4th day of March, 2014, at the City of Mississauga, in the Central West Region, did procure F.E. to become a prostitute, contrary to section 212(1)(d) of the Criminal Code of Canada.
Nenad Korof further stands charged:
- That he, on or between the 1st day of June, 2013 and the 4th day of March 2014, at the City of Mississauga, in the Central West Region, for the purpose of gain, did exercise control, direction or influence over the movements of F.E. in such a manner as to show that he was aiding, abetting or compelling that person to engage in prostitution with unknown males, contrary to section 212(1) (h) of the Criminal Code of Canada.
Nenad Korof further stands charged:
- That he, on or about the 29th of October, 2013, at the City of Mississauga, in the Central West Region, did procure M.G.-B. to become a prostitute, contrary to section 212(1)(d) of the Criminal Code of Canada;
2The trial on this matter took place over seven days and both complainants testified. I will deal with the testimony of F.E. first and the charges relating to her.
F.E.:
Examination-in-Chief:
3F.E. first met Korof through a company called ACN. ACN is a multi-level marketing company selling services such as internet and home phones. Essentially a person will recruit other people to sell the services and the more people you recruit the better it is for you. It is like a pyramid scheme.
4F.E. then came to know Korof further through another multi-level marketing company known as Vemma. F.E. was interviewed for the job and was hired. Korof was her mentor. Korof was responsible for teaching her how the company works. Vemma marketed energy drinks and a healthy lifestyle.
5F.E. described the process this way:
What you would do is you would invite your friends and your family into one location and you would get up in front of them and you would tell them your life story. You know, your, your rags-to-riches kind of story. So I went in and talked about, you know, my past which wasn’t a good one. There was a lot of abuse involved.
6F.E.’s sales did not go well with Vemma. At this time F.E. was in significant debt in the amount of $30,000. She had studied finance at Everest College and some of this debt was student debt. While she was at Vemma she was also in receipt of Ontario Works.
7F.E. was staying with a friend sleeping in her living room. F.E. discussed this situation and her debt issues with Korof.
8Korof and F.E. discussed other ways for her to make money. The initial discussion related to whether she had any friends that would want to work as strippers or escorts.
9F.E. had attended at a strip club with Korof prior to this discussion. Initially she did not know about any friends that would do this but eventually she did let Korof know she did know someone who wanted to be a stripper.
10F.E. introduced A.G-B. to Korof. A.G-B., F.E. Korof and a man named Patrick all met at A.G.-B.’s house. Except for Patrick, they all went to Café Atlantis, a strip club. Korof was telling them how the business works. He wanted to buy a condo and car and all they had to do was dance. He and his friend, Patrick, would put out money and get what they needed and they would dance in return. The money they received from the customers for dancing would be handed to Korof and he would invest it.
11A.G.-B. decided after their visit to the strip club that she did not want to do it. At this point the plan changed. F.E. describe the new plan:
When I couldn’t find anybody for him, he had mentioned that maybe it would be easier if we found women that were already working in clubs and he explained that the way that would work is if I started working in the club, then I could talk to women and I could find them that way.
12F.E. told Korof she did not want to strip. However, Korof was persistent and kept bringing it up talking about her hopes and dreams and her past. Eventually F.E. did change her mind and begin stripping.
13On her first night Korof briefed her. He told her she needed to bring a few pieces of I.D. and make sure she brought everything they had purchased and to look good and be ready to dance. Korof had chosen her stripper name, Alyssa. Korof had also explained to her the difference between dancing freelance as opposed to on schedule. In furtherance of getting ready to dance Korof had purchased her shoes, lingerie, and he had taken her to get her nails done.
14On the way to the club Korof was just prompting her, telling her not to tell the club she had a pimp, and not to tell them she had a boyfriend. She should tell the club she was in school because it looks better and when she got into the club to look for a manager and talk to him directly.
15The first night at the club Korof drove her. On her first night she signed the Entertainer’s Registration Form along with a separate form agreeing to the rules that she will not proposition customers for sex for money.
16On her first night F.E. was very nervous. She texted Korof who gave her a pep talk. On this night she made between $200 to $400. Korof had given her $80 for the D.J. fee. After she left the club Korof met her outside. He asked for the money and she handed it to him.
17F.E. thought she had done pretty well on her first night but Korof laughed and told her that was horrible and she should be making a lot more. F.E. felt like a failure. He made her feel like a dog.
18F.E. gave Korof the money as he had agreed he would get her somewhere else to live. Plus she was paying him back for the shoes and lingerie.
19The next day F.E. danced again. On this occasion Korof had given her MDMA to make it easier. The MDMA made her happier, more sexual.
20F.E. indicated that near the start of her dancing Korof had mentioned that by doing extras she could make more money. At first she said no but through time she agreed. Every time she handed Korof money from dancing it was not enough in his opinion.
21Korof frequently mentioned to F.E. that she should be doing extras, that is sex for money, because that is where the money is. Korof told her:
That if I really wanted to get this condo and I wanted my dreams to come true, I wanted to retire in two years, that I would have to be making more and he said that I should be doing the extras.
22She would give the money she made to Korof and he would invest it. It was Korof who brought up the idea of F.E. doing extras.
23Eventually F.E. did perform extras. Although she had her own condoms initially afterward Korof purchased them for her. With respect to what she should charge for extras Korof told her what the prices should be.
24F.E. testified that Korof or a driver would drive her to Café Atlantis. Korof arranged this and said it would be easier and safer. The driver provided protection. As soon as she started dancing Korof had arranged for a driver. The driver would be paid $80 per night.
25If F.E. needed anything she was to call Korof or text him and he would either bring her what she needed or take her to pick these things up.
26F.E. testified that Korof would pressure her to do better. She described one occasion when he came into Café Atlantis and she spoke to him:
Q. Okay. What, what would those conversations entail or if you remember a specific one please tell us about that as well.
A. I do. He – when I would come out after being with a client or in the back and I would see him there, I would approach him and we’d say hello and he’d ask, you know, how’s the night going and I would tell him how much I had made. There was one incident where I told him that the night wasn’t well, like it wasn’t I guess….
Q. A slow night I guess?
A. It was, it was a slow night, yes. And I had asked him, I was like listen, I didn’t make any money tonight and I need to pay the DJ, and he had said that I’m going to have to stay there and work until I have like money and that he would not give me the money for it, for the DJ and he would basically, he’s like why don’t you go talk to this person or that person and he’d start pointing at different people. He’s like you should be talking to them.
Q. Okay. Did you respond to him at all or do anything…
A. Yes.
Q. …as a result of that conversation? What happened?
A. Yeah, basically, you know, like obviously I would tell him like it sucks. And I, I’ve been talking to all these people and nothing’s happening and he would just say, well, you need to pay the DJ or else you’re not leaving kind of thing.
Q. Okay. Did you ever think about just say leaving on your own and taking a cab or going home a different way?
A. No, I was convinced to not to do that because he said its unsafe and Nenad said it was unsafe and that by having somebody to come pick me up there’s less risk of somebody following me home.
27F.E. described one occasion when she made $3,000 when a customer proposed they go to a hotel. She contacted Korof and he and Andrew drove her to the hotel, The Stage West in Mississauga. The $1,000 up front money was given to Korof. Afterwards she gave a further $1,000 to Korof. She had indicated to Korof the price was $2,000 only so she could keep the other $1,000 without telling him so she could pay a Rogers bill. She told Korof that the transaction with the customer was only $2,000.00 because he refused to pay a Rogers bill for her which was getting really high. If he knew there was $3,000.00 he would have taken the full $3,000.00.
Q. What do you think or what did you think at the time would happen if you said no, I’m keeping a thousand. I’ve got to pay this bill. You’re not doing it. Forget it. How would that have gone in your opinion?
A. Well, the way I felt that would’ve happened at the time was obviously he would take it and if I refused, I was afraid he would use some sort of physical force to take it.
28F.E. explained that any time a customer approached her in the club and asked her to go home she would always have to ask Korof for permission. She would have to tell him if she needed a ride or if the customer was taking her, how much the customer was paying, the address and the car. In case something happened he wanted to know where she was.
29The last day she worked as a stripper was the night before her birthday. So she danced from August 28 to December 7. In Korof’s opinion she was not making sufficient money. Her average take home at the strip club was $600.
30After she stopped dancing she started escorting. She was setup on Backpage. Backpage is an online forum where women post their availability for sex for money. It’s called Backpage.com. It includes a picture, phone number, prices and guidelines. Korof introduced her to Backpage. Korof had created and set-up the account on his own and showed her the website he had created. The prices were decided by Korof himself.
31Exhibit 2 filed at trial is the Backpage account. At first the escorting was done at the condo and then moved to a hotel. In order to bring the ad back up to the top of the page so people can see it first when they sign in a fee of $10 is paid on account.
32Korof would generally book the hotel room. With respect to booking the hotel she stated the following:
Q. All right. And when he would book the hotel, you would go to the hotel and it was booked online. Did you have to present anything to the hotel or did he come in with you when you went there?
A. When we got there, what would happen was I would, I would go in and I would tell them that I had booked a room, and the first time I went in I didn’t realize we needed to have the actual credit card with us. So when I walked in and they asked for my credit card, and I don’t have one, so he, Nenad, I ended up calling him and telling him that he had to come back because they need to see his credit card. So he did enter the hotel with me that night and every night after that.
33Exhibit 3 is the Allissa Kay g-mail account. This was the account set-up for the escort service. It was set-up by F.E. and Korof together and it was set-up to book hotels and accept money from select clients. The money from clients would go into Korof’s account. In order to give some context to these transfers, F.E. described the process for the court as follows:
Q. Okay. Okay, and page three is just the rest of the email. And page four, we’ve got another forwarded email and, again, the date on this one is Thursday, December the 19th, 2013. It looks like it was an e-mail from a Gergo Ilko and it’s an electronic transfer to Alyssa or the Alyssa K account in the amount of 20 dollars. Again, you click the link that says e-transfer.interact.ca and that money goes into whose account?
A. Nenad’s account.
Q. Okay. And what was this money sent to the Alyssa K account for?
A. This was just another customer.
Q. Okay. And I’m not asking you to specifically tell me whether or not it was, you know 15 minutes and whatever sex act, I’m just saying what, what was the exchange? What are they giving you the money for? Is it, is it sex, is it a birthday gift? Is it – what is it?
A. A lot of these customers, I had already had sexual intercourse with previously.
Q. Okay. So are they sending this money in relation to a sex act or something else? That’s what I’m getting at.? What are they paying for?
A. Well, basically it is because we have had previous sex and they just want to know that they care by sending me…
Q. Okay.
A. …money.
Q. Are they – did you do anything to get the money in these e-Transfers?
A. Well, yes I had sex with them previously.
Q. Okay. And again, page five is the rest of the email. We go onto page six, we’ve got another forwarded email from Jody. I’m not even trying to pronounce that name. And its 150 dollars. The date of this one is December the 30th. And again, is this money sent to the Alyssa K account in exchange for sex acts?
A. Yes.
Q. Okay. And whose account does that money go into?
A. Nenad Korof.
Q. Page seven, it looks like Christmas, December 2013, December 25th, is the Jody name again, 300 dollars, Interac transfer and whose account did that go into?
A. Nenad’s.
MS. GOULIN: Q. Okay, Ms. E., we’re still on page eight here, and well, I’m pointing to the 250 dollars, the e-Transfer, do you remember exactly what happened in order for you to receive that money? Is that something you have a memory of?
A. I do.
Q. Okay. Tell us about that, please.
A. This client was what you would call a sugar daddy. So that basically means that his is somebody you meet with regularly and you do have sex with them and you, you know, it’s basically you pretend like they’re – you’re his girlfriend. And this person sends you money frequently to support that.
Q. So support what?
A. The sexual act.
Q. Okay. And this person is the Jody J, that’s the individual that we’re talking about?
A. Yes.
Q. So I’m going to back a little bit. I just want to be clear. On page seven where Jody J, that’s the Christmas one again, that’s 300 dollars. Do you remember exactly what was done in exchange for that 300 dollars?
A. The exact same thing.
Q. Okay. Page six, Jody J again. One-hundred and fifty dollars e-Transfer, do you remember exactly what was done for that 150 dollar electronic transfer?
A. The same thing. He’s my sugar-daddy. I have sex with him.
Q. Okay. Now the Gergo one, on page four, that was the 20 dollars. Do you remember what was done in exchange for the 20 dollars?
A. This person, I believe I met online.
Q. Okay.
A. And it was somebody who also wanted to be a sugar-daddy and this amount was sent to me before we had had sex.
Q. Okay. Page six, Jody J
34On average F.E. would have eight clients per day. She would give the cash to Korof. She would get to and from the hotel by being driven by Korof or Sam. F.E. stayed at the hotel for about a month and she would be there about five days each week. She would make upwards of $1,000 per day. All the money went to Korof.
35In total the Backpage ad was up for a few months.
36Korof wanted the money from her so he could invest it.
37With respect to the condo at 60 Absolute Drive, she moved in in November 2013. The condo lease was in Korof’s name. The rent was $1,700 per month. Korof took care of the rent. Due to her poor debt situation Korof had mentioned that her name would not appear on any of the lease documents.
38After F.E. moved into the condo she started doing webcam sex. This was Korof’s idea. To be a cam girl you have to sign up on the website and set up an account. The two websites set up for F.E. were LiveJasmin and Streamate. Exhibit 5 is the Streamate and LiveJasmin Account information. The Hotmail account was set out by Korof for these webcam sessions. Korof had purchased the webcam as well.
39F.E. began to make it clear to Korof that she wanted to quit. She testified that there were many times she said she wanted to quit. Korof would discourage her from quitting. The following exchange is relevant on this point:
Q. Okay. How – when you say they talked you back into staying, what was it that appealed to you or that you found convincing in that regard?
A. They would use my goals and my dreams and my past abuse as a motivator. They would say, you know, do you – like Nenad would say do you really want to go back to the way you were living? Do you really want to go sleep on somebody’s couch? Like is that the life you want? And, obviously, nobody wants that life. And then he would talk about how, you know, if you keep doing this, he’s like, you know, you’ll retire for life in two years, you know, by the time you’re 24. And he said, like you know, then you could have your family. You can, you know, have your life, the life you’ve always wanted.
40Eventually F.E. did quit and she described that day unfolding as follows:
Q. Tell us how it was that you came to the police or Officer DeCordova.
A. There was a day that the police had raided the condo because it was under Nenad’s name. They entered the unit and they were doing – they were looking for something. And that incident actually helped me get out because it was the next day or the following day Nenad had come to the condo and he said that he was being watched and that he needed me to just continue on my own for a little while until he can come back. He didn’t want to be seen around me at the time but then I took that opportunity to say that I was actually leaving because now I was provided with like safety and security and a way out that I thought as safe.
Q. Okay. How – you said that he came to the condo or you had the times when you ‘d say you wanted out and you wanted to quit, those were at the condo in November, how often would you say Mr. Korof was there?
A. He was there almost every day.
Q. Okay. Would he ever sleep over?
A. He slept over once, yes.
Q. Okay. And how long after the police came to the condo, how long after that did you end up going to report this to the police?
A. It was probably about a week and a half, I would say.
41Overall F.E. estimates she made enough money to cover her $30,000 debt multiple times. She was never able to pay back the debt and in fact had to file for bankruptcy in June 2014. When she asked Korof if she could have the money he was supposedly investing for her he looked at her and laughed and said “there is no money”.
Cross-examination by the Defence
42The cross-examination of F.E. covered a number of areas with references to her preliminary inquiry testimony of April 29, 2015 and the statement made to the police on March 4, 2014.
The Boston Trip
43F.E. testified that Korof was upset that she did not get paid to go to Boston with a client. He was angry with her. She was not sure if she told the police he was angry. She told the officer in her statement that Korof said to her: “Oh well, that’s good but next time you have to get cash. He’s like what are jeans going to do for you?”
Re: Her fear for her brother
44She acknowledged she did not tell the police in her statement she was afraid for her brother. Although her brother hated her he was still family. She testified that the issues relating to her brother were irrelevant at the time she spoke to the police.
Re: initial discussion of dancing:
45When she began to hang out with Korof he was her mentor at Vemma. Things did not work out for her at Vemma and because things were not going well at Vemma, Korof suggested to her that she should strip.
46Before there was any mention about F.E. being a dancer she had attended strip clubs to socialize with Korof and others.
47The original plan was that she would not be a dancer. She was going to be his partner and recruit other dancers. She was asked to recruit her friends to work for Korof and she would get 10 per cent. She would make 10 per cent of what the women would make dancing.
48In her March 4 2014 statement she told the officer she never found any girls. She tried to recruit some girls and was unsuccessful.
49Korof made multiple suggestions to her that it would be easier to recruit the girls if she was dancing. F.E. eventually did agree that it would probably be easier to do it that way. At first she disagreed with this suggestion because she did not want to strip personally. In response Korof told her she should continue to find other girls then. At the April 29 Preliminary Inquiry when asked what Korof’s response was she said she was not sure. The following exchange at the trial took place on this point:
Q. Oh, okay. All right, But it’s clear as day, under oath, when you’re asked that question, you weren’t sure how he responded to you not wanting to dance, right?
A. That day, yes.
Q. Yeah and the reason is because it didn’t happen. It didn’t happen. You didn’t say I didn’t want to dance. Anything like that. That’s why you said you weren’t sure, ‘cause you were caught at that point, at the prelim, right?
A. That’s not true.
Q. Okay. ‘Cause I said it – suggested to you repeatedly, that it was never his suggestion that you dance. It was the other way around. You wanted to dance to make some money. Do you agree or disagree with that suggestion?
A. I disagree.
Q. All right. Then you end up becoming a dancer, right?
A. I did.
Q. And tell us exactly how does one go from not being a dancer, not being a stripper, being somebody in multi-level marketing, dreams about a better future, and does one go from that to all of a sudden a decision I’m going to strip?
A. Nenad
Q. Oh, it’s Nenad. I’m saying, psychologically to you, how do – how – what conversations – how does it end up that you actually become a stripper, from not being a stripper?
A. Through conversation, I was influenced into doing that.
Q. You were influenced. I’m going to suggest to you, you have no idea in terms of Mr. Korof being responsible, because it was your idea. You can disagree with that.
A. I do disagree with that.
Re: Dancing at the Club
50At a meeting with Korof, F.E. and M.G.-B., M.G.-B., who was considering the idea of being a dancer, asked Korof if she did not want to dance she could just quit. Korof was saying in a question asked by M.G.-B. that if she wanted to leave next week she could leave and essentially it’s her loss.
51F.E. danced at Café Atlantis from the end of August to the beginning of December 2013. During this time period she never told Korof she wanted to leave.
52F.E. was asked about her motivation for dancing:
Q. I’m going to suggest to you ma’am that you were interested in dancing as a financial opportunity to make money to pay off our debts? Would you agree or disagree?
A. Disagree.
Q. And certainly you wanted a better life for yourself? You wanted to pull yourself out of debt. Is that correct?
A. Yes.
Q. And dancing was one of those ways to get out of debt. Is that correct?
A. Not a way I would have thought.
53F.E. testified that she was very nervous on her first night of dancing and Korof calmed her down. Korof had purchased the things she needed.
Q. Now, you had very little money, if any, to afford to buy things such as nice high heels or a dancing outfit or to pamper yourself for things such as a manicure, pedicure. Would that be correct?
A. That’s correct, I didn’t need those things.
Q. Right, the question is you didn’t have money to do those things, correct?
A. That’s correct.
Q.’ You couldn’t afford those things, correct?
A. That’s right.
Q. Mr. Korof was somebody who could pay for those things on your behalf, correct?
A. He didn’t do it out of the good of his heart.
Q. Okay, Mr. Korof was somebody who could pay for those things, correct?
A. As an investment for himself, yes.
Q Right, as an investment for himself, correct?
A. That’s correct.
Re: Condo
54In cross-examination F.E. stated that she did not ask Korof to find her a place to live. She had been living in a toxic environment.
55At the preliminary inquiry on April 29, 2014 when asked if she asked Korof to get her a condo she stated:
I asked him to find me another place to live because I was being – I was in a toxic environment. I was sleeping in the living room, like you mentioned, and I needed to move out.
56F.E. testified that she asked Korof to find her a place after he offered to do so.
Re: Motivation to Dance
57F.E. testified that her motivation came from Korof. The motivation to pay off her debt and make money to retire were all suggestions that came directly from Korof.
Re: Extras
58F.E. testified she did have a credit card. At the preliminary inquiry she testified she did not have a credit card. She explained this in that she did not have a working credit card.
59F.E. testified at trial that Korof’s credit card was used because there was no option given to her.
60F.E. testified that it was Korof who suggested that she do the extras and that is why she got involved in doing the extras. He asked her to do extras plenty of times. He did not use any physical force against her but he did manipulate her enough by using her past and her future dreams.
61One night when Korof, A.G.-B., and F.E. were at the club one of the girls approached them and said the money is in the extras. F.E. had a vague idea of what extras were before Korof raised the topic.
62F.E. had spoken to a dancer at the club on two occasions and this dancer was telling F.E. that in her opinion there was more money to be made in extras. The conversation with the stripper definitely had played a part in her decision to do extras.
63Korof was continuously telling her she was not making enough money for the dream that he had presented to her. Korof put her down every single night because she was not making the money he wanted.
64Korof also told her he had other girls. A suggestion was made to her that she never told the police he had told her he had other girls. F.E. was certain she had mentioned this in her statement.
65F.E. did not make the decision to do extras of her own free will.
66F.E. also had discussions with Korof about pricing with respect to the extras.
67F.E. described an outcall she had with a client in which she went to a hotel. She charged the client $3,000. She agreed to this outcall after she asked Korof if it was okay. She had to make sure Korof was okay with the price.
68F.E. testified that she started escorting because Korof told her she needed to make money.
69With respect to whether she was forced to do extras she testified she was coerced into doing them by Korof.
Q. And by coerced you mean that he used your personal life against you. Is that correct?
A. Coerced to me meant that he was using emotional stressors from my past and ….
Q. Right, he - sorry, I apologize, go ahead.
A. That’s okay.
Q. Okay. He, he would talk to you about your past, about your debt, about your living situation. Basically in your view he was using these things against you.
A. That’s correct.
Re: Waterloo trip
70F.E. stated she had taken three days off so that she could visit a sick friend in Waterloo. At the April 29 preliminary inquiry she stated it was approximately two weeks that she took off. At trial she confirmed it was three days.
Backpage
71With respect to the escorting she engaged in at the hotel, Korof would walk her into the hotel and submit his credit card. He would walk her to the room and drop her off. Later that night or the next morning he would come to the hotel to collect her or the money.
Re: Instagram Photos – Exhibit 6
72Fourteen photographs were shown to F.E. as set out in Exhibit 6.
− October 26, 2013 Photo of F.E. - #living life # loving life
live #love #life
− November 5, 2013 Photo of a Louis Vuitton bag and a bundle of cash #me#living life…#cash for days
− November 5, 2013 Photo of inside of the condo #lifeistoogood #livinglife # loving life
− January 8, 2014 #those days when you are #happyenoughto#stay in bed all day
− January 11, 2014 at a Raptors game with Korof
− February 4, 2014 #blonde and #loving life
− February 25, 2014 #live#love#life#laugh#loveliving
73F.E. explained that “having a good life it’s a condo life” is a typical social media expression. The day she was home in bed she had gotten a spray tan the night before and she was allowed to take the day off so the tan would not smudge.
74The photo with the cell phone was a gift from a customer.
75The photo with her blonde hair came about as a result of a customer paying for hair extensions after she dyed her hair blonde.
76F.E. testified that if she hashtagged that her life sucks and she hated it she would not get any likes. The message she was sending out with these hashtags is completely the opposite of what she was feeling.
Texts After She Quit
77F.E. acknowledged that she sent texts to Korof.
Q. Okay, this is a message that you sent to Mr. Korof. You sent him on February 11th, I presume you’ve quit by then?
A. It seems that way in this text message.
Q. Right, you say to him, “Be genuine, be honest – sorry I, I’ll back up, for the record, its February 11, 2014, first page of the current exhibit. Be genuine, be honest, be real, be – and be pure. You will build relationship that will last you a lifetime. Money can’t buy that. Just be the real you and you will have – you will be the happiest man alive XO.” You wrote that to Mr. Korof, right?
A. I believe so.
Q. Okay, and XO is hugs and kisses?
A. Yes.
Q. Okay, and then the next one is February 12th, 2:04 a.m. “I’ll be moved out by May 4th. I will stay here the extra two months I paid. You will have to figure out rent yourself or work it out with Sam. Please respect my space. I prefer you didn’t come around here. I’ve already talked to Sam. Have a good night or morning and I hope everything works out of you. Just keep in mind my last text ad you’ll – you will have everything and more. Happiness that lasts ten lifetimes rather than temporary happiness that may only last five minutes. I know what you’re capable of doing and you can do great things. You can make a huge positive impact on everyone’s lives, worldwide. Just be good, do good, and good everyone’s lives, worldwide. Just be good, do good, and good everyone’s lives, worldwide. Just be good, do good and good will always follow you, XO.” You wrote that to Mr. Korof?
A. I believe so.
78F.E. explained these texts in that she is a very positive person. She was trying to make a positive change in Korof’s life.
Re-Examination
79F.E. explained further the context of some of the Instagram photos. The Louis Vuitton purse was fake and Korof had purchased it for her.
80The bundle of cash was from her dancing and these were funds she gave to Korof.
81The expensive Mooseknuckle coat was purchased for her by a client.
82The Raptors tickets were purchased by Korof.
83With respect to the messages on her Instagram photos she stated she did not want people to know she was unhappy. That’s not a good message to put out there. People do not like to hear about sad people.
84F.E. testified that she had to tell Korof where she was going “because I was basically Nenad’s property.”
85With respect to not telling the police or the court she had credit cards, F.E. did state at the preliminary inquiry that she had credit cards.
86With respect to the defence suggestion in cross-examination at trial that she never told the police about Korof having other girls, it was confirmed in her March 4 statement that she did in fact tell the police the following:
He would tell me that his other girls were making like $1,500 dollars a night and I’m making you know, 200, let’s say two or 300 was my average.
Bank of Montreal Business Records for Korof
87Filed as Exhibit 13 at trial were the Bank of Montreal business records.
88Exhibit 13 Tab 2 sets out the MasterCard statements. Page 6 sets out a credit limit of $2,000 and with a new balance of $2,017.30 as of August 4, 2013. Page 15 of Tab 2 shows a new balance of $2,171.14 as of December 5, 2013.
89At pages 20 and 21 there are lines in the account for Hotels.comCanada, and Backpage.com for the month of December 2013.
90Tab 3 relates to the MasterCard Statements. In October 2013 there is a credit limit of $1,000 with a balance of $1,045.12. In January 2014 there is a credit limit of $1,000 with a balance of $1,085.73. Pages 16 and 17 and 18 sets out expenses for Tim Horton’s, BP Classified and for Backpage.
91Commencing in February and March 2014 the MasterCard no longer has entries for BP Classified for Backpage.
92Tab 4 are the statements for the Bank of Montreal. Page 7 sets out Direct Deposit of $680 on June 17, 2013 and July 3, 2013 for Canada EI.
93On page 15 these is a deposit of $4,750 on November 4, 2013 by way of a draft.
94At page 18 it sets out an Interac transfer received of $250 on December 4, 2013 matching the December 4 transfer from the Allissa Kay Gmail account.
95Page 20 sets out several interact e-transfers as follows:
December 9 2013 $500.00
December 19 2013 $20.00
December 27 2013 $300.00
96At page 22 there is an Interac e-transfer received by Korof of $1,000 on January 8, 2014.
97All of these interact transfers are from the Allissa account.
98On page 21 the following expenses are noted:
Jan 4 2014 Sunset Tan $26.28
Jan 7 2014 Beachin’ Tan $39.55
99These tanning expenses are one and two days prior to the Instagram photo of January 8, 2014 in which F.E. testified she was in bed all day after tanning sessions.
100The final piece of evidence I wish to refer to is the Admissions of Fact at Trial filed as Exhibit 12 at trial. It sets out the following:
The Bank of Montreal Business Records file as exhibit 13 are records kept in the usual and ordinary course of business by the Bank of Montreal with respect to Mr. Korof’s accounts at tabs 2-6 of said exhibit.
Officer Sweeting seized Mr. Korof’s wallet when Mr. Korof was arrested on March 13, 2014. Inside Mr. Korof’s wallet were the following:
a. 2 Bank of Montreal Mastercards in Mr. Korof’s name
b. 1 Bank of Montreal bank card in Mr. Korof’s name
c. 1 Air Miles card in Mr. Korof’s name
d. Mr. Korof’s health card
e. Mr. Korof’s driver’s licence
The Lease Agreement filed at Exhibit 14 is the agreement signed by Mr. Korof for unit 703 at 60 Absolute.
During the time period of August 1, 2013 to March 5, 2014:
a. F.E. received 1588 text messages and 435 calls from Nenad Korof (through each respective cell phone)
b. F.E. initiated 1562 text messages and 174 calls to Nenad Korof (through each respective cell phone)
c. M.G.-B. received 126 text messages and 12 calls from Nenad Korof (through each respective cell phone)
d. M.G.-B. initiated 119 text messages and 7 calls to Nenad Korof (through each respective cell phone).
Position of the Crown
101The Crown submits that the totality of the evidence establishes both counts relating to F.E. beyond a reasonable doubt. The Crown points out that force is not an essential element with relation to these matters.
102Korof was a pimp. He found out what motivated F.E. which included her debts and her dreams and aspirations. As a result he manipulated and controlled her. He also used her abusive past as a vehicle to capitalize on her vulnerability.
103The Crown submits that the testimony of F.E. was brutally honest. She was credible and reliable and her evidence was uncontradicted and unchallenged. It was Korof who persuaded and coerced F.E. to start stripping. It was Korof who suggested and convinced F.E. to do extras, the escorting and the webcam.
104The Crown argues that the text messages to Korof demonstrate the absence of motive to lie and the absence of animus towards Korof.
105All of the exhibits filed corroborate the testimony of F.E. with respect to time and the events as testified to by F.E. The Bank of Montreal business records, the AllissaKaygmail account and the Streamate and livejasmin account information all support the testimony of F.E.
Position of the Defence
106In summary, F.E. gave evidence that was inconsistent with testimony that she gave at the preliminary hearing, on April 29, 2015 and the statement that she gave to the police on March 4, 2014. She was evasive in many areas. She repeatedly and forcefully “pointed the finger” at Mr. Korof and blamed him for the reason she got into prostitution even though the record shows that her primary motivation was money. Even though she claimed she was unhappy in the work that she was doing and claimed that she was being used by Mr. Korof, she sent Mr. Korof an email after she had quit being a prostitute – in that email she praised Mr. Korof as to how she admired him and that he could change people’s lives. She also posted many Instagram photos of herself with tags that showed she was living the life, enjoy the condo life, making money and generally was very happy with her current situation at home.
Governing legal principles
107Counsel filed several cases setting out the legal principles applicable to the charges.
108In R. v. Barrow 2001 CanLII 8550 (ON CA), [2001] O.J. No. 2219 Rosenberg J.A. set out the definition of “procure” for the purposes of s. 212 at para: 37 as follows:
Procure" for the purposes of s. 212 has been interpreted by this court and the Supreme Court of Canada in R. v. Deutsch (1983), 1983 CanLII 3484 (ON CA), 5 C.C.C. (3d) 41 (Ont. C.A.), affirmed 1986 CanLII 21 (SCC), [1986] 2 S.C.R. 2, 27 C.C.C. (3d) 385. Le Dain J. held as follows at pp. 26-27 S.C.R., p. 403 C.C.C.:
In the case at bar the Court of Appeal agreed with the trial judge on the applicable meaning of "procure". The meaning selected by the trial judge and approved by the Court of Appeal was "to cause, or to induce, or to have a persuasive effect upon the conduct that is alleged." Martin J.A. expressed his agreement at p. 49 with the following statement of the issue by the trial judge: "The question for decision is did Mr. Deutsch attempt to cause or attempt to induce or attempt to have a persuasive effect upon the woman in question to have illicit sexual intercourse with another person . . .". I agree that the sources referred to by the trial judge and Martin J.A. support the meaning given by them to the word "procure".
109At paragraphs 38 to 40 Justice Rosenberg relates that definition to the factual matrix in Barrow:
The charge of attempting to procure Constable Urajnik to have illicit sexual intercourse related to the date at the motel, which was arranged for her by the appellant. Despite the care with which the appellant conducted the interviews with the officers and her obvious intention not to pressure them into having either illicit sexual intercourse or to become prostitutes, I am satisfied that it was open to the trial judge to find that the element of procuring was made out in relation to Constable Urajnik. This was essentially a question of fact. There was some evidence of an attempt by the appellant to have a persuasive effect upon the officer. The appellant advised the officer, whom the appellant had hired after the initial interview, to obtain condoms before going to the motel room and told her that she had to go through with the appointment because the appellant did not have another escort who could attend. This was all in the context of the earlier conversations where it was made clear that some of the clients were expecting the escort to perform sexual acts for the $150 fee. It was open to the trial judge, who had the advantage of hearing the officer and listening to the tape recordings, to find that the conversations leading up to the motel date were intended by the appellant to have the required persuasive effect. I would uphold the conviction for attempting to procure illicit sexual intercourse in relation to Constable Urajnik. I would conditionally stay the charge of attempting to procure Constable Urajnik for the purpose of prostitution.
I take a different view, however, of the encounter between the appellant and Sergeant Rollin. This never went beyond the first interview and Rollin was not "hired" and no "date" was arranged. Even taking into account the trial judge's advantage, my reading of the transcript of evidence and the transcript of the tape recordings shows little more than the appellant acquainting the officer with the business. The officer presented herself as experienced with men and of knowing what an escort agency involved. The only element of persuasion was the appellant's references to the possibility of earning a lot of money. These statements were not tied to a requirement of illicit sexual intercourse or prostitution. The appellant simply told the officer that if she worked a lot she could make a lot of money, but it was entirely up to the officer. The appellant stressed that the officer should think about it and make sure it was what she wanted to do. There is one part of the taped transcript that is of some concern where the appellant described for the officer what a date might be like:
Appellant: Like tonight I can tell you exactly what's going to happen, you're going to get there and you're not going to have any problem . . . (unintelligible).
Rollin: (unintelligible)
Appellant: (unintelligible) . . . oh God, you're going to make a fortune. Like I always tell the girls . . . (unintelligible).
Rollin: Oh, that's too funny.
Appellant: He's gonna tell you, oh, I don't do this that often, he does it three times a week. Oh, you're really pretty, you're so beautiful, like why are you doing this, give me your telephone number I want to call you at home on your own.
Rollin: Yeah right.
(Emphasis added)
As in Deutsch, the holding out of large financial rewards in the course of the interview dependent upon the necessity of having sexual intercourse is capable of constituting the actus reus of the offence. However, so much of this part of the conversation is unintelligible that it is impossible to determine whether this is what the appellant is referring to. In her testimony, Sergeant Rollin was not asked about this part of the conversation. In the end, I cannot be satisfied that the appellant attempted to procure Sergeant Rollin within the meaning of s. 212 and I would set aside the convictions on those counts.
110In R. v. Griffiths 2015 ONSC 6237, [2015] O.J. No. 5674 Justice Dawson thoroughly reviews the elements of these offences commencing at paragraph 37:
I reviewed many of the legal principles related to this topic in my reasons dismissing the defence application for a directed verdict of acquittal. As I indicated there, to “procure” in the context of s. 212(1)(d) of the Criminal Code means to cause, to induce or to have persuasive effect upon the complainant to become a prostitute: R. v. Deutsch (1983), 1983 CanLII 3484 (ON CA), 5 C.C.C. (3d) 41 (Ont. C.A.), aff’d 1986 CanLII 21 (SCC), [1986] 2 S.C.R. 2. Coercion is not required. Inducement or persuasive efforts are enough: R. v. Bennett (2004), 2004 CanLII 36124 (ON CA), 184 C.C.C. (3d) 290 (Ont. C.A.); R. v. Barrow (2001), 2001 CanLII 8550 (ON CA), 155 C.C.C. (3d) 362 (Ont. C.A.); R. v. Burton, 2013 ONSC 2160 at para. 144; R. v. Stephenson, [2013] Q.J. No. 3801, at paras. 147-150.
38In R. v. Mara, 1996 CanLII 1504 (ON CA), [1996] O.J. No. 364, 27 O.R. (3d) 643 (C.A.), Dubin C.J.O. said: “The basic definition of prostitution is the exchange of sexual services in return for payment.” He cited authority to support his conclusion that intercourse was not required. He then held, at para. 32, that the lap dancing in that case, which very closely resembled what the complainant described in this case, “constitutes a form of prostitution”. Mara was followed by Dambrot J. of this court in R. v. Akouros, [2006] O.J. No. 285 (S.C.J.), where he held that similar dances, which involved women in see-through lingerie being paid to grind themselves into men’s genital areas to get them aroused, constituted acts of prostitution. I am bound by Mara and find Akouros persuasive. The lap dances performed by the complainant constitute acts of prostitution.
39Based on this definition of prostitution it goes without saying that the “extras” the complainant performed in return for payment also constituted acts of prostitution.
40The only issue in relation to count 1 is whether the accused procured the complainant to become a prostitute. I observe that s. 212(1)(d) states that an offence is committed where an accused “procures or attempts to procure” someone to become a prostitute. However, the indictment in this case limits the allegation to actual procuring. I have not been asked to consider convicting the accused of attempting to procure on the basis that attempting to procure is an included offence.
41Turning to count 2, as I mentioned when dealing with the application for a directed verdict, I find what was said by the Quebec Court of Appeal in R. v. Perreault (1996), 1996 CanLII 5641 (QC CA), 113 C.C.C. (3d) 573 at pp. 575-76 to be applicable:
The element of control refers to invasive behaviour, to ascendancy which leaves little choice to the person controlled. This therefore includes acts of direction and influence. There is the exercise of direction over the movements of a person when rules or behaviours are imposed. The exercise of direction does not exclude the person being directed from having a certain latitude or margin for initiative. The exercise of influence includes less constricting actions. Any action exercised over a person with a view to aiding, abetting or compelling that person to engage in or carry on prostitution would be considered influence.
42In R. v. Martinez, [1994] N.J. No. 437 (Nfld. S.C.), cited with approval in Perrault, the court held that an accused exercised direction or influence by telling complainants where to go, transporting them, and by telling them how much to charge.
43Section 212(1)(h) requires that the accused must have acted “for the purpose of gain”. I would point out that in R. v. K.R.B., 2004 ABCA 307, the Alberta Court of Appeal held that this requirement is quite different from the financial benefit required to be established when the crime charged is living off the avails of prostitution under s. 212(1)(j). Under s. 212(1)(h) it need not be shown that an accused actually received anything, just that he acted for the purpose of gain. I agree with that determination.
Legal Principles Applied to the Facts in the Case at Bar
111I am satisfied that the testimony of F.E. demonstrates that the words and conduct of Korof procured her to become a prostitute. As Justice Dawson noted in Griffiths coercion is not required. Inducements or persuasive efforts are enough. The only issue on Count 1 is whether the accused procured the complainant to become a prostitute.
112The defence asks this court to find that F.E. was not a credible or reliable witness. The defence submits that her demeanour in testifying is a critical factor in that analysis. The defence submits that she smirked and smiled during cross-examination and almost played cat and mouse with counsel. At no time did she display that she as emotionally upset by the circumstances until she did so briefly during re-examination. The defence also submits she was evasive.
113Firstly, I do not agree with the characterization of F.E.’s testimony as set out by the defence. On the contrary, I found F.E. to be a thoughtful and honest witness. There is no doubt that the defence cross-examined F.E. vigorously with respect to her trial testimony matched up against her preliminary inquiry testimony and her statement to the police. I will deal with this evidence shortly, however, I do wish to firstly make a comment about the demeanor of a witness.
114Judges instruct juries that they are not to jump to conclusions based entirely on how a witness testified. The following instruction is generally given to juries on this point:
Looks can be deceiving. Giving evidence in a trial is not a common experience for many witnesses. People react and appear differently. Witnesses come from different backgrounds. They have different abilities, values and life experiences. There are simply too many variables to make the manner in which a witness testifies the only or most important factor in your decision.
115The defence is correct when he points out that F.E. only become emotional during an exchange in re-examination by the Crown. The exchange was this:
Q. In any event you said something that you felt like you, you could go off on your own, but you felt like you had to tell Nenad where you were going. Do you remember talking about that portion of your transcripts with Mr. Paradkar?
A. Yes.
Q. Why do you feel that way that you had to tell him where you’re going?
A. Because I was basically Nenad’s property.
Q. Okay. And Mr…..
THE COURT: Do you want to take – do you want to take a break?
MS. GOULIN: Do you want to take a minute?
116It is important to note in my review of the cross-examination by the defence that F.E. was taken to her April 29, 2015 preliminary inquiry testimony and her March 4, 2014 statement to the police with frequency and pointing out prior statements in detail. As I will review in these reasons, many of the areas covered do not diminish the strength of F.E.’s core evidence relating to Korof’s effort to induce and/or persuade her to become a prostitute. Nor does it diminish her testimony relating to the essential elements at play on Count 2.
117Let me start with F.E.’s testimony with respect to those efforts.
118Korof recruited F.E. to work at Vemma. I accept her evidence that Korof was her mentor. F.E. used the term mentor. The ordinary definition of a mentor is an experienced and trusted advisor.
119Korof knew the process of selling at Vemma and F.E. described it in her testimony:
What you would do is you would invite your friends and your family to one location and you would get up in front of them and you would tell them your life story. You know, your, your rags to riches kind of story. So I went in and talked about you know, my past which wasn’t a good one. There was a lot of abuse involved.
120Korof knew that F.E. was a vulnerable young woman and had an abusive past. At the time of these events she was 21 or 22 years of age. She had discussed her significant debt situation with Korof. Korof knew she was not making money at Vemma. Korof knew her living arrangements were not good. I am satisfied that Korof knew and commenced capitalizing on a vulnerable young woman.
121After F.E. started stripping at Café Atlantis Korof’s manipulation continued and then escalated. After her first night of dancing she made between $200 and $400. When she gave Korof the money and he counted it she thought she did pretty well. To her that was a lot of money for one night. When Korof counted it he laughed and said that was horrible. F.E. felt like a failure. He just “made me feel like a dog.”
122I accept F.E.’s evidence that his criticism had that effect on her.
123The second night she danced was easier for her. She was given MDMA by Korof. This made her feel happier and more sexual. However, every time she handed Korof money from dancing it was not enough. Korof frequently mentioned doing extras. I accept her testimony that Korof told her that if she really wanted to get this condo and wanted her dreams to come true, and she wanted to retire in two years, that she would have to be making more and he said that she should be doing the extras.
124I am satisfied that Korof used this speech to F.E. to influence her and persuade her to eventually do the extras. Korof saw and recognized the vulnerability and capitalized on it. Korof told her on more than one occasion that the money is in the extras. Whether F.E. was also influenced by one of the dancers that the money was in the extras does not diminish Korof’s role in suggesting and persuading F.E. to do the extras.
125In furtherance of doing the extras, Korof purchased condoms for F.E. after she did not have any of her own left.
126There is no doubt Korof was invested in F.E. When she first started stripping he had purchased for her the things she needed, shoes, lingerie, getting her nails done. He either drove her to the club or provided a driver for her. She gave the money she made to him. After she started doing extras he provided her with condoms. He discussed with F.E. what prices she should charge for the extras. Anytime she needed anything she was to call or text Korof and tell him what she needed and he would either bring her what she needed or take her to get what she needed.
127F.E. testified she had worked at Café Atlantis from August 28, 2013 to December 7, 2013. She stopped dancing at the club and doing extras because it became harder to get clients. There were approximately five strippers to one client. In Korof’s opinion she was not making sufficient money. After working at the Club F.E. started escorting. Korof introduced her to Backpage, an online forum where women post availability for sex on Backpage.com. F.E. began escorting at the condo and at hotels. Korof was responsible for paying for Backpage.com and booking the hotel.
128F.E. testified that Korof would use her goals, her dreams and her past abuse as a motivator.
129In cross-examination by the defence F.E. never wavered or resiled from her testimony that becoming a prostitute came about as a result of the inducement and persuasive efforts by Korof. The following exchanges are relevant on this point:
Q. Now, correct me if I’m wrong, but is it your position that because things weren’t going well at Vemma, that it was Mr. Korof that suggested to you that, that you should strip?
A. Yes.
Q. Okay. Cause I said it – suggested to you repeatedly, that it was never his suggestion that you dance. It was the other way around. You wanted to dance to make some money. Do you agree or disagree with that suggestion?
A. I disagree.
Q. And tell us exactly how does one go from not being a dancer, not being a stripper, being somebody in multi-level marketing, dreams about a better future, how does one go from that to all of a sudden a decision I’m going to strip?
A. Nenad.
Q. Oh, it’s Nenad. I’m saying, psychologically to you – how do – how- what conversations – how does it end up that you actually become a stripper, from not being a stripper?
A. Through conversation. I was influenced into doing that.
Q. You were influenced. I’m going to suggest to you, you have no idea in terms of Mr. Korof being responsible, because it was your idea. You can disagree with that.
A. I do disagree with that.
Q. Okay. You can’t even – you couldn’t even explain it at the prelim, ma’am. It’s at the bottom of page 25, which him sure you’ve already read ahead.
A. I have.
Q. So here’s the question. By the – by counsel. The question is, the same page, 25. “Okay, where – so where do you go or how does working as a dancer come about, hen as far as going to a club, I guess?” Answer: “It was all very fast. He asked me which areas I would like to work in. he bought me shoes and he gave me money to get my clothing, lingerie. He brought me to get my nails done and a tan.” The next page, “After getting some clothes and your tan and nails, did you go to a club?” And then you explained in your evidence to the Crown that the shoes were the wrong size and then ultimately you go to Café Atlantis. Do you remember being asked those questions and giving those answers?
A. Yes.
Q. I’m going to suggest to you ma’am that you were interested in dancing as a financial opportunity to make money to pay off your debts? Would you agree or disagree?
A. Disagree.
Q. And dancing was one of those ways to get out, out of debt? Is that correct?
A. Not a way I would have thought.
Q. …your motivation to dance was to get money to pay off the debt, correct?
A. My motivation came from Nenad.
Q. Okay, so the question was one of the motivations you had was to pay off your debt, that’s why you danced, correct?
A. Yes.
Q. Okay and there are other things that motivated you. For example, you wanted to retire in a couple of years. Make all this money and retire. Is that fair
A. All of these motivations were suggestions that came directly from Nenad.
Q. Your evidence is that it was Mr. Korof who suggested to you to do the extras and that’s why you got involved in doing the extras?
A. Yes.
Q. Okay. Did you think you should do them? How did you respond to that?
A. I frequently told him that I did not want to do that.
Q. Did you ever change your mind?
A. Yes, I did.
Q. Okay. So eventually you did provide extras. Is that right?
A. I did.
Q. Okay. What changed your mind? What caused you to think that that was something you should do?
A. Like I said previously, every time I gave him the money, he would put me down and he would tell me that I’ not getting anything by doing this. So there was a couple days when I was working in the club that customers had presented me with the offer of, you know, I’ll give you ‘x’ amount of money if you perform this with me.
Q. Okay and you can say – this is, this is court, so whatever the exact truth is just tell us the words. It’s not going to upset anyone. Okay?
A. Okay.
130F.E. testified in cross-examination that Korof continuously told her she was not making enough money and that she should be doing extras. Eventually she began escorting.
131The cross-examination that elicited inconsistencies or changes to her trial testimony matched up against her Preliminary Hearing testimony and/or statement do not, in my assessment, diminish the strength of her core testimony that F.E. became a prostitute and started doing extras at the club and then escorting came about as a result of the inducements and persuasive efforts of Korof.
132I will not deal with all of the areas of inconsistencies but I do wish to deal with some.
Re: Boston Trip
133At trial she stated Korof was upset that she did not get paid by the client to go to Boston. In her statement to the police she did not tell the officer Korof was upset. She told the officer Korof said “oh well, that’s good, but next time you have to get cash. He’s like what are jeans going to do for you.”
134This is not an omission that causes me any concern.
Re: Fear for her brother
135F.E. acknowledged that she did not tell the officer she had a fear for her brother or that her brother hated her. She explained that by stating that issue was irrelevant at the time she spoke to the officer.
136This is not an omission that causes me any concern.
Re: Korof being on a separate team at ACN
137At trial she said she was not sure if Korof’s team was separate from hers. In her statement she said it was.
138This detail is of no significant to my analysis.
Re: F.E. recruiting girls to be dancers only
139At trial she testified that Korof wanted her to recruit girls to be dancers.
At the preliminary hearing she stated the following:
Q. All right. Line 20 you were asked the question, “You indicated in your evidence before in-chief that when you started at Atlantis, Mr. Nenad Korof, he wanted you to recruit girls. Those were your – the words you used, recruit.” Answer, “Yes.” Question, “Right. Recruit for what?” Question, “For them to work for him.” Answer, Question, “Yes. As dancers?” Answer, “Yes.” Question,”Right. You never mentioned in your evidence that he wanted you to recruit girls to work for him as prostitutes. You never said that.” Answer, “Is that a question?” Question, “Do you agree with me you never said that?” Answer, “I’m unsure.” Question, “So recruit to you meant recruit other girls to work as dancers.” Answer, “Yes.” You were asked those questions and you gave those answers.
A. Yes.
140In reading this answer at the Preliminary Inquiry in its totality it is clear that the recruitment is only for dancing.
141At trial she did say the initial discussion with Korof was whether she had any friends that would want to work as a dancer or an escort. This is an inconsistency. However, I accept and find as a fact that the initial recruitment related to finding friends only to be dancers.
Re: Asking Korof to get her a place
142At trial F.E. denied asking Korof to get her a place. At the preliminary inquiry she testified that she did ask him to find her a place as she was living in a toxic environment. At trial she acknowledged that answer and explained it by saying yes she did ask him but after he offered.
Re: having a Credit Card
143At trial she testified she had a credit card at the time she was escorting. At the Preliminary Inquiry she stated she did not have a credit card and as a result Korof’s credit card was used.
144At trial she explained the inconsistency in that she did not have a working credit card. She had credit cards that she did not use. In re-examination she explained that the credit cards were maxed out. I accept her explanation as reasonable.
Re: Korof telling her he had other girls
145At trial F.E. stated Korof told her he had other girls.
146In cross-examination it was suggested to her that she never told the police he had other girls. She maintained her position that she did tell the police. In re-examination she confirmed that she had told the police he had other girls. She told the officer that he would tell her his other girls were making like $1,500 a night and she was making $200-$300 on average.
147As I indicated there are other areas where her trial testimony was different than her statement and/or preliminary hearing, however, I am not satisfied that any of the differences are such that F.E’s testimony is not credible or reliable.
148Whether she went to Waterloo for three days or a week is of no significance.
149The testimony that she knew what extras were and also became aware of prices and that the money was in the extras from another stripper does not diminish or exculpate Korof from the influence he had in persuading and suggesting to F.E. that she engage in the extras.
150I accept the defence suggestion that F.E.’s conversation with the stripper played a role in obtaining certain information relating to extras, however, the primary influence came from Korof, her trusted mentor.
151I am also not persuaded that the Instagram photos necessarily depict a young woman whose life is in reality the one depicted in those photographs. F.E. explained the photos and why those hashtags were included and I accept her evidence in that regard. F.E. was involved with Korof from the end of August 2013 to December 7,. 2013 when she quit working at Café Atlantis. After this time she began escorting. The Instagram photos cover the following dates: October 26, 2013, November 5, 2013 (3 photos), January 7, 2014, (2 photos) January 8, 2014, January 9, 2014, January 11, 2014 (2 photos), February 4, 2014 (3 photos), and February 25, 2014. These photos relate to eight days over a period of over six months. I cannot accept the defence position that these photos represent the reality of F.E.’s life.
152As I indicated I accept F.E.’s evidence with respect to these photos. I am satisfied that they are not representative of how she was feeling over the period of time she was under the influence of Korof not only while she worked at Café Atlantis but also subsequently when she was an escort.
153With respect to the text messages I also accept her testimony on why she sent them. There is no set script on how someone will conduct themselves in the aftermath of such events.
154I agree with the Crown that the messages do not reflect someone who has animus toward Korof or who has a motive to lie. How a young vulnerable woman behaves in these circumstances cannot be delineated with any certainty. It will no doubt vary as does a complaint’s demeanour in testifying about such matters will vary. In her text message of February 12 she clearly advises Korof to respect her space and she would prefer if he did not come around. She does tell Korof she knows what he is capable of doing and he can do great things. I cannot accept that these text messages erase or undo almost six months of influence and persuasion by Korof on F.E. Again, I accept F.E.’s explanation relating to those text messages.
155I am satisfied that the Crown has proved Count 1 beyond a reasonable doubt.
156With respect to Count 2, in addition to the testimony I have already reviewed, there is objective evidence that supports the testimony of F.E. The Bank of Montreal banking records matched up against the Allissa Kay Gmail account provides corroborating documentary evidence to support the testimony of F.E. as to time and events.
157Prior to reviewing these Exhibits it is important to review the control, direction and influence over the moments of F.E. from the start. The following factors are relevant:
− from the outset Korof arranged to purchase the items she needed to be a stripper; shoes, lingerie, getting her nails done
− Korof provides F.E. with a driver so that he would arrange for her to travel to and from the club. The drivers were selected by Korof.
− when F.E.’s condom supply ran out Korof purchased the condoms for her
− on her second night of stripping Korof gave her MDMA to calm her and she did in fact feel happier and more sexual
− the constant criticism of how much money she made stripping influenced F.E. to move into doing extras. Korof capitalized on a young vulnerable woman with references not only to her goals but also with reference to her abusive past. This influence and persuasion to do extras was significant
− once F.E. started doing extras at the club Korof would discuss the prices of her services
− the money she made while at the club was given to Korof as he had advised F.E. that he would invest it on her behalf in furtherance of her goal to retire in two years
− whether she asked him to do so or whether he offered to do so and then she asked, Korof arranged to lease a condo in his name for F.E. The rent was significant at $1,700. per month. A deposit of $5,100 for three months was paid by Korof. In order to pay this rent I am satisfied he utilized the cash F.E. earned from working at the club and escorting. The bank records show that Korof is in receipt of E.I. and has his credit cards maxed out. There is no other evidence to establish he can sustain his living expenses from any source of income from Vemma.
− when F.E. starts escorting at the hotel Korof drives her to the hotel and picks her up. The hotel is booked on his credit card and as such it is necessary for him to go into the hotel to present them his credit card information. Korof would return after her work is done and collect the money she made from being an escort. He would also bring her food as required.
− the Backpage.com advertising is done on his credit card.
I accept F.E.’s testimony that her credit cards were maxed out and could not be used for this purpose.
− the banking records show that the money she was paid was transferred to Korof’s account.
158Exhibit 3 is the AllissaKay Gmail account. I will not review all of the entries but I will review some as illustrations:
From: GD…
Date: Wed, Jan 8, 2014 at 2:37 p.m.
Subject: INTERAC e-transfer from GD
Allissa Kay,
GD has sent you an Interac-Transfer Amount: $1,000.00 (CAD)
Exhibit 13 Tab 4 page 22
Into Korof’s account Jan 8, 2014 Interac e-Transfer received $1,000.00
Exhibit 13 – Page 10
From: Jody J. Narozanski
Date: Sat Dec 7, 2013 at 7:42 p.m.
Subject: INTERAC e-transfer from Jody J. Norozanski
To: Nenad Korof
Amount $500.00 (CAD)
Exhibit 13 Korof”s account
December 9, INTERAC e-Transfer received $500.00
Exhibit 3 page 8
INTERAC transfer December 4, 2013 for $250
Exhibit 13 page 18
December 4, INTERAC e-Transfer $250
159F.E. testified that all of these payments were for her work as an escort.
160Exhibit 13 also sets out other payments made on Korof’s accounts. At tab 2 pages 20 and 21:
Dec. 14, 2013
Hotels.com
$89.76
Dec. 15, 2013
BP Classified (for Backpage)
$10.00
Dec. 19, 2013
Hotel.com
$179.10
Dec. 19, 2013
BP Classified
$10.00
Dec. 19, 2013
BP Classified
$10.00
Dec. 21, 2013
Hotels.com
$102.26
Dec. 21, 2013
Wendy’s
$11.06
Dec. 21, 2013
BP Classified
$10.00
Dec. 26, 2013
Tim Horton’s
$4.66
Dec. 26, 2013
A & W
$8.48
Jan. 3, 2014
Backpages.com
$10.00
Jan. 5, 2014
BP Classified
$10.00
161All of these expenses support the testimony of F.E. that Korof paid for the Backpage.com advertising, the hotels, and food when she needed it.
162The defence submits that Korof’s savings account was empty and his chequing account remained empty for the most part. From August 2013 to February 2014, Korof attempted to pay off the balance of his credit cards by making multiple payments each month ranging from $40 to $900 and was never able to clear the balances on either of his credit cards.
163The defence argues that F.E.’s evidence with respect to these financial statements and expenses is nonsensical. If Korof was receiving enough money from F.E. to pay off her $30,000 debt multiple times why would he have credit card debt. The defence argues that the financial evidence is more consistent with Korof being in a poor financial state, unable to pay off his credit card debt.
164The difficulty with the defence argument is that Korof is financially capable of paying the condo rent of $1,700 per month. In fact it was necessary for him to come up with three months’ worth of rent all at once in the amount of $5,100.
165Further, Exhibit 13 at Tab 4 page 14, the indication is that Korof is on EI. On October 8, 2013 a Direct Deposit is made from Canada EI in the amount of $680.00 for a two week period with a further EI payment of $680 on October 22, 2013. In the same time period a deposit is made into Korof’s account in the amount of $4,750. This is a significant sum of money for someone who cannot even pay off his credit card payments. There are no paychecks going into Korof’s account.
166The logical and reasonable inference from all of this documentary evidence is that Korof received the money earned by F.E. and spent it. Supported by this documentary evidence I accept the testimony of F.E. I am satisfied that Korof saw the complainant as someone who was generating income for him.
167The Instagram photo of January 8, 2014 with respect to staying home as a result of getting a tan is supported by the bank records showing expenditures at Sunset Tan and Beachin’ Tan at the relevant time. Again, another piece of evidence supporting the testimony of F.E.
168It is important as well to look at the Admissions of Fact at trial which demonstrates the level of contact between F.E. and Korof. Korof is in constant contact with both F.E. and M.G.-B. As set out at paragraph four of the Admissions during the period of August 1, 2013 to March 5, 2014 the following contact is agreed to:
(a) F.E. received 1,588 text messages and 435 calls from Korof (through each respective cell phone)
(b) F.E. initiated 1,562 text messages and 174 calls to Korof (through each respective cell phone)
(c) M.G.-B. received 126 text messages and 12 calls from Korof (through each respective cell phone)
(d) M.G.-B. initiated 119 text messages and 7 calls to Korof (through each respective phone call).
169I am satisfied on the totality of the evidence that Korof received the money from F.E. she earned as a prostitute. He did for the purposes of gain exercise control, direction and influence over her movements and in doing so aided, abetted and compelled her to engage in prostitution. I am satisfied beyond a reasonable doubt that the essential elements of Count 2 have been proven beyond a reasonable doubt.
Count 3 Re: M.G-B.
170I wish to review the trial testimony of M.G.-B.
Examination in Chief
171M.G.-B.’s first encounter with Korof occurred at her home in late October 2013. At this meeting were her sister, A.G.-B., F.E. Sam and Korof. Korof did all the speaking and talked about dancing and all the benefits of dancing and what kind of future it could provide, including a car, a condo, and early retirement.
172Korof also discussed extras and the pricing of extras, extras being sex for money.
173Several financial options were discussed with her and she was told Korof he would be investing the money for her.
174Her first night of dancing was at Atlantis and she attended with F.E., Korof, and Sam. On this night she and F.E. engaged in a sex act together for a customer and made $360 which they gave to Korof.
175She danced a couple of more times and decided it was not for her and she stopped.
176Sam and Korof wanted her to continue to work. In a text message to Korof, M.G-B. states:
Sam treated me like a prostitute and I’m not about to be pimped.
177She said this because for the first couple of days she decided not to work Sam and Korof made it known to her they were not happy.
178Korof had indicated to her that she could stop any time she wanted.
Cross-examination
179At the initial October 2013 meeting she did not know how the conversation arose about dancing. Korof is doing all the talking. After the meeting she decided to try it out. At the initial meeting there is no mention by Korof of extras.
180The motivation for M.G-B. to start dancing was to make some extra money.
181The motivation was making money by dancing and the benefits of dancing. M.G-B. testified that she wanted to think about it but the choice was hers:
Q. The choice was yours if you wanted to do it or not correct?
A. I was not force into it that’s correct.
Q. Right, you were not forced into it, correct?
A. No.
Q. All right, you did this of your own free will, correct?
A. I did yes.
Q. Okay.
A. And very much influenced as well, that’s correct.
182She later acknowledged that she made a conscious choice to do it.
183With respect to the sex act performed with F.E. for a customer, M.G.-B. explained that she had done MDMA and was feeling sexually aroused by F.E. as she is not sexually attracted to men so she performed sexual activities with her for money. No one forced her to do anything. She was there to make money.
Q. You’ve already indicated, but just to clarify, you were not forced by Mr. Korof to do any of these things?
A. No, I made my choice based off of what I heard and what I felt I needed at the time.
Q. Okay. You’d agree with me that nobody owned during this time, right, no one owned you?
A. No.
Q. Okay.
A. I’m not a piece of property.
184M.G.-B. acknowledged sending the following message to Korof after she had stopped dancing:
Q. Right and you say in the message, “Hi Nenad, I wanted to simply tell you how I think it’s incredible you’ve been able to lift yourself up and succeed, even after the curve balls that have been thrown at you. I remember our conversations about what it is you wanted to accomplish and honestly think it’s amazing you pushed through everything and got it all done. Alongside that, I did also want to let you know that I’m sorry of the curve balls I was involved in. I was literally dragged into it all and wanted nothing to do with it. The person I had an issue with was actually” – let’s go to the next page, “The person I had an issue with was actually your co-worker and the threats made against me. I do wish you the best. Normally I would jump at the opportunity to speak with you but I know the group of us have our history. But I see you wanted to teach and help others and think it’s admirable. Again, wish you the best. I do want to check out your website but not quite sure of how to feel about it just yet because of what has transpired between us.” You did send Mr. Korof this message, right?
A. I did, yes.
185She said this before she knew how extreme the charges were.
Re-examination
186When asked about coming to court to testify she stated that she did not want to. She stated, “I am a very independent and a very strong woman. I actually didn’t want to come to court at all.” She went on to say, “Knowing what I know now and knowing that there are women who are not as strong as I am to walk away, I would not have sent the apology.”
187Finally she reiterated that she was really influenced by the money.
Analysis and Conclusion
188I am not satisfied that the Crown has proven this count beyond a reasonable doubt.
189The evidence does not support the Crown’s theory that Korof procured M.G.-B. to become a prostitute.
190Further, M.G.-B. did not present as a vulnerable young woman who could be influenced or persuaded to do anything.
191Cross-examination made it clear that she made the decision to dance on her own and if there as any influence from Korof it was marginal.
192M.G.-B. is a strong and independent woman. She had made the decision to dance of her own free will. She was more influenced by the prospect of making some extra money as opposed to what Korof was telling her.
193Unlike F.E., Korof did not capitalize on a vulnerable young woman and manipulate her to do what he wanted her to do. On the contrary M.G.-B. was in control at all times.
194Unlike F.E. there was no power imbalance and no prior mentor relationship that existed with F.E.
195The evidence does not establish that Korof procured M.G.-B. to become a prostitute. He did not persuade her to do anything she did not want to do herself. M.G.-B. is a very independent and strong woman and made her decisions based on what she needed at the time. She made a deliberate and conscious choice on her own.
196There will be a finding of not guilty on count 3.
197The Crown applied to the court for a similar fact count to count ruling arguing that a count to count similar fact analysis is available in all of the circumstances. I do not agree. In light of my findings and conclusion as it relates to Count 3 and M.G.-B. the dissimilarities are such that a count to count similar fact application cannot succeed. In all of the circumstances the application is dismissed. It is not necessary in these circumstances to engage in a more detailed analysis of the underlying facts or the relevant jurisprudence.
Justice Joseph M. Fragomeni
Released: February 7, 2017
CITATION: R. v. Korof, 2017 ONSC 865
COURT FILE NO.: 15-1157
DATE: 20170207
ONTARIO
SUPERIOR COURT OF JUSTICE
B E T W E E N:
HER MAJESTY THE QUEEN
- and –
NENAD KOROF
REASONS FOR JUDGMENT
Justice Joseph M. Fragomeni****
Released: February 7, 2017